Balance of Payments: Components

Balance of Payments: Components

Intuition Publishing
Updated Sep 24, 2020

The balance of payments is a statement that summarizes the economic transactions of a country with the rest of the world during a specific time period, usually a year or quarter. It records all payments made to other economies as well as all payments received from other economies. Here we introduce the concept of the balance of payments by describing the components of this statement - the current account and the capital and financial account.